CoolKicks founder arrested after $500K worth of stolen Nike merchandise found at warehouse: police

The founder of a popular sneaker and apparel retail company was arrested last week after authorities allegedly discovered thousands of stolen Nike items during a raid in Southern California.

The Los Angeles Police Department said officers executed a search warrant Thursday at the CoolKicks warehouse in Santa Monica, working alongside several law enforcement agencies.

Investigators reportedly recovered more than 2,100 pairs of Nike shoes and 150 cartons of Nike apparel valued at approximately $500,000.

At CoolKicks, on Melrose Avenue, in Los Angeles, CA, there are more than 2,000 shoe options, with the majority being Nike. (Jay L. Clendenin / Los Angeles Times via Getty Images)

“We entered into this purchase in good faith, as we always have—committed to running an honest business built on integrity and trust,” the statement read.

The company also said that no allegations have been made suggesting the products were counterfeit.

The raid occurred while CoolKicks was livestreaming an auction on the WhatNot platform. Shams, who was on camera at the time, appeared startled and asked whether he was the victim of a swatting incident.

An employee at sneaker store CoolKicks, on Melrose Avenue, in Los Angeles, California, wears a chain with the company logo, photographed Friday, Sept. 22, 2023. (Jay L. Clendenin / Los Angeles Times via Getty Images)

Shams is scheduled to appear in court later this month. The investigation remains ongoing.